FTC cautions US tech firms over compliance with EU and UK online safety laws

The US Federal Trade Commission (FTC) has warned American technology companies that following European Union and United Kingdom rules on online content and encryption could place them in breach of US legislation.

In a letter sent to chief executives, FTC Chair Andrew Ferguson said that restricting access to content for American users to comply with foreign legal requirements might amount to a violation of Section 5 of the Federal Trade Commission Act, which prohibits unfair or deceptive commercial practices.

Ferguson cited the EU’s Digital Services Act and the UK’s Online Safety Act, as well as reports of British efforts to gain access to encrypted Apple iCloud data, as examples of measures that could put companies at risk under US law.

Although Section 5 has traditionally been used in cases concerning consumer protection, Ferguson noted that the same principles could apply if companies changed their services for US users due to foreign regulation. He argued that such changes could ‘mislead’ American consumers, who would not reasonably expect their online activity to be governed by overseas restrictions.

The FTC chair invited company leaders to meet with his office to discuss how they intend to balance demands from international regulators while continuing to fulfil their legal obligations in the United States.

Earlier this week, a senior US intelligence official said the British government had withdrawn a proposed legal measure aimed at Apple’s encrypted iCloud data after discussions with US Vice President JD Vance.

The issue has arisen amid tensions over the enforcement of UK online safety rules. Several online platforms, including 4chan, Gab, and Kiwi Farms, have publicly refused to comply, and British authorities have indicated that internet service providers could ultimately be ordered to block access to such sites.

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